European countries are discussing the establishment of a pan-European financing fund with the participation of the European Rehabilitation Bank with the participation of Great Britain. This was reported by the Financial Times (FT) newspaper, citing European officials.
According to him, the heads of the Ministries of Finance of the European countries gathered in South Africa are discussing the issue of creating a bank or the overall fund with the participation of Great Britain. "Events are developing at a fast pace," the newspaper quotes one of the officials.
One of the offers is to create a bank of upgrades. It should be created in the example of the European Bank for Reconstruction and Development. Upgrading Bank can provide loans to buy military equipment, as well as for industrial projects in the field of defense, both private sector and governments. The newspaper notes that Poland, which currently presides over the EU, supported this proposal.
FT writes that the establishment of a joint fund with the participation of the United Kingdom and the EU is also being discussed.
The limited scale of such a fund may allow it to be created faster than the bank, say analysts. From an administrative point of view, this is easier.
Europe's push will increase the defense budget when governments are trying to reduce the state deficit and debt, the newspaper notes.
